Market Update: Earnings Season to Start. Are You Ready?

4 min read | January 14, 2019 06:40 PM AEDT | By Team Kalkine Media

It can be assumed that from some time the market players are focusing on the Federal Reserve’s comments as well as trade tensions. However, the upcoming week would see the earnings reports of the US companies, and it can be said that the mood of the investors would largely be dependent on the earnings reports. Therefore, it is expected that the market players would now be focusing more on the earnings reports at least for some time. It is important to note that the primary factor which the investors need to track in the earnings report would be the outlook of the companies. Most of the companies would be declaring the outlook after considering the conditions prevailing in the global markets. Hence, it can be assumed that, throughout the week, the movement of the equity markets would largely be sensitive to the earnings reports.

Earlier, the market players were largely concerned about the trade battle between the US and China. However, the steps are being taken to end the trade war. Now, even the Federal Reserve is showing signs that they would be patient with respect to the interest rate increases which have positively impacted the sentiments of the global market participants. On January 11, 2019, Dow Jones Industrial Average ended the day slightly lower as the index closed at 23,995.95 which implies the marginal fall of 5.97 points or 0.025%.

Worries About Slowdown: A Primary Factor That Had Impacted Oil Prices

It can be expected that the oil prices, moving forward, would largely be dependent on the news related to the trade talks. The geopolitical worries impact the financial markets which, in turn, impact the movement in the oil prices. An increase in the worries about the global downturn also increases the worries about the fall in oil prices. An economic downturn could severely impact the demand of oil which could result in fall in the oil prices. Not so long ago, there were fears that the oil prices would be negatively impacted by the global economic slowdown and by the increased supply.

Australian Markets Got Wrapped Up Slightly Lower

The Australian markets ended marginally lower on January 14, 2018. Today, S&P/ASX200 closed at 5773.4 which reflects the decline of 1.2 points. In the week ahead, the movement in the US equity markets (because of the earnings results) would also be affecting the Australian markets. The stocks like Seven West Media Limited (ASX:SWM) and Nine Entertainment Co. Holdings Limited (ASX:NEC) closed today’s session higher as these stock rose 4.717% and 4.594%, respectively. However, the stocks like BlueScope Steel Limited (ASX:BSL) and Automotive Holdings Group Limited (ASX:AHG) have fallen today by 5.172% and 3.716%, respectively.

Additionally, Torian Resources Limited (ASX:TNR) had made an announcement that the company has managed to wrap up an oversubscribed placement. Read the entire news here. Also, Freedom Oil and Gas Limited (ASX:FDM) had made an announcement regarding the changes with respect to the leadership roles. Read the full news here.

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